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AICPA Exam CPA-Financial Topic 3 Question 45 Discussion
Actual exam question for
AICPA's
CPA-Financial exam
Question #: 45
Topic #: 3
[All CPA-Financial Questions]
Topic #: 3
The following items were among those that were reported on Lee Co.'s income statement for the year ended December 31, 1989:
The office space is used equally by Lee's sales and accounting departments. What amount of the abovelisted items should be classified as general and administrative expenses in Lee's multiple-step income statement?
Suggested Answer:
A
Note: 1/2 of the office space of $240,000 was used by the sales department, which should be allocated to 'selling expenses' (not general and administrative).
Choice 'a' is correct. $290,000.
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